Rental in France grows 15.6% in Q1

French rental and distributor association DLR reported that the country’s equipment rental sector saw a 15.6% increase in business activity in the first quarter of the year compared to the same quarter of 2020.

The first quarter was also 2.3% higher than the final three months of 2020, indicating that the market continues to recover, even as France was seeing further lock-downs during the early part of the year.

In the quarterly Barometer – which DLR gave the headline ‘The illusion of growth’ – the organisation said activity levels were following cycles of collapse and recovery depending on lockdowns.

“The magnitude of these variations is less and less strong, as companies have become accustomed to living, or rather working, with the virus”, said DLR.

Building under construction in Poitiers, France, in April this year. (Photo: Jean-François FORT / Hans Lucas via Reuters Connect).

The report also highlights some positive findings, with hiring and investment intentions close to their historic highs in all three sectors (rental, material handling and sales of equipment.)

DLR analysed the rental sector’s use of the government’s business interuption guarantee scheme (PGE), with the state guaranteeing loans granted between March 2020 and the end of the year.

In rental, only 8% of companies had used their PGE allowance, and in total 56% of rental companies qualified for access to these lines of credit.

“About half of companies therefore have low-cost money to carry out projects after the crisis”, said DLR.

The study revealed that the rental sector has fared better in the first quarter of the year than both the material handling sector and distributors of new machines.